Define: Associated Company

UK Accounting Glossary

Definition: Associated Company


Quick Summary of Associated Company


One company exercises significant influence over another, falling short of complete control.



What is the dictionary definition of Associated Company?

Dictionary Definition


In accounting and business valuation an associate company (also known as an associate or associated company) is a company in which another company owns a significant portion of voting shares, usually between 20 – 50%. In this case, an owner does not consolidate the associate’s financial statements.


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Examples of Associated Company in a sentence


One should be concerned with how the associated company is to be treated in the parent’s consolidated financial statements.
Jones Textiles Ltd. and its associated company Highgrade Fashion were subject to tax advantages as a result of the new regulations.


Synonyms For Associated Company


affiliated company, affiliated companies, associated enterprise, related company, affiliated undertaking


Cite Term


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https://payrollheaven.com/define/associated-company/
Modern Language Association (MLA):
Associated Company. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 24, 2020 https://payrollheaven.com/define/associated-company/.
Chicago Manual of Style (CMS):
Associated Company. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/associated-company/ (accessed: February 24, 2020).
American Psychological Association (APA):
Associated Company. PayrollHeaven.com. Retrieved February 24, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/associated-company/

Definition Sources


Definitions for Associated Company are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.